Tariffs effects ….

[Simplespeed]

It appears that the current trade balance is out of balance and Trump intends to bring it back into balance using tariffs. In other words Americans are buying their goods from other countries and American manufacturing are not selling their products to other countries due to the taxes and restrictions placed on on them which is really a tariff… What does that mean for the snowmobile industry? It means anything not made in the United States will likely increase and companies that do not want to loose their current business in the United States will likely set up manufacturing plants in the United States.. So snowmobiling just got more expensive no matter how you look at it unless you manafacture in the United States and even then you will have the start up cost to recover…. I think Ski-Doo holds the largest Share of the Market in United States and these tariffs will have the biggest effect. Not only on sales but parts also. Not a good outlook to say the least.. I could be wrong and probably are but if you see more price increases on what most already consider too expensive for use enjoyed it will drive customers away from sport.. At least potential customers .. Lets just say the hay days are ending and the days ahead will have change. As far as Someone buying Cat and continued manufacturing of the brand it may be the best time to do this as they will have the help of trade balance which in it self makes the playing field more attractive providing they can produce at affordable prices.. These facts may be more attractive for Honda, Kawasaki or Yamaha to take a look at manufacturing in this country.. United States is a big market and has room to improve manufacturing in all aspects of our lives.. Will tariffs raise prices, yes short term , most definitely. Then why have them? To bring back manufacturing in the United States.. Why do we need to bring back manufacturing in the United States? Because China has aligned with Russia and both China and Russia are now trading using forms of payment other than the world reserve currency which is the United States dollar. In short they don’t want the United States to have any control over them such as santions we imposed on them in the past… So if we rely on China to manufacture most everything for us and they were to stop shipping , who has the control then ? Its about control … United States has been for many years keeping the Global Economy operating along with help from other nations when it was in their best interest. Many battles and wars over these supply lines and routes over the years.. Many lives effected and many lives lost.. The amount of money spent is enormous as we furnish and pay for the largest military to accomplish this task.. Its the price of being the reserve currency and having financial control over the rest of the world.. It allowed us to be the judge of actions around the world and to impose sanctions when they stepped out of line..Now that China and Russia has in effect eliminated future sanctions it will be very important to bring back manufacturing as we will need to produce the very items we buy from others… And that includes recreational vehicles and parts used to make them.. The sooner the United States gets away from China manufacturing the better and their actions are not in the best interest of the United States…Tariffs are the start and overdue …Comments and thoughts on this sensitive subject without slinging mud please.. Just a good conversation and not meant to offend anyone is in order ….

 

[RAMSOMAIR]

What tariffs? On again, off again. Will there really be any real tariffs? Someone finally grabbed him by the ear yesterday and he actually listened. We shall see if anything transpires.

 

[74Nitro]

Every morning I like to get my fill of the late shows take on all this. Kimmel, Fallon and the rest.
The USA is already GREAT, so no one seems to knows what's going on.

 

[REDLINE 1]

What tariffs? On again, off again. Will there really be any real tariffs? Someone finally grabbed him by the ear yesterday and he actually listened. We shall see if anything transpires.

Just a bargaining ploy. 75 countries have stepped up and want to negotiate now. In the end it will all work out for the better.

 

[RAMSOMAIR]

Trump “says” 75 countries want to negotiate bahahahaha.

 

[STAIN]

Kimmel, Fallon and the rest.

avoid them at all costs, they have no grasp of what really is happening to the average joe.

 

[Fleecer]

The price of snowmobiles will not matter when the country is bankrupt, which is where we were headed.

Without a doubt, there will be some short term pain for long term gain, but be patient. Trump is like a 998 with a big tune and when he pulls up to the line, he means business

Sit back and let the greatest president in history do his job!!

 

[Sevey]

It appears that the current trade balance is out of balance and Trump intends to bring it back into balance using tariffs. In other words Americans are buying their goods from other countries and American manufacturing are not selling their products to other countries due to the taxes and restrictions placed on on them which is really a tariff… What does that mean for the snowmobile industry? It means anything not made in the United States will likely increase and companies that do not want to loose their current business in the United States will likely set up manufacturing plants in the United States.. So snowmobiling just got more expensive no matter how you look at it unless you manafacture in the United States and even then you will have the start up cost to recover…. I think Ski-Doo holds the largest Share of the Market in United States and these tariffs will have the biggest effect. Not only on sales but parts also. Not a good outlook to say the least.. I could be wrong and probably are but if you see more price increases on what most already consider too expensive for use enjoyed it will drive customers away from sport.. At least potential customers .. Lets just say the hay days are ending and the days ahead will have change. As far as Someone buying Cat and continued manufacturing of the brand it may be the best time to do this as they will have the help of trade balance which in it self makes the playing field more attractive providing they can produce at affordable prices.. These facts may be more attractive for Honda, Kawasaki or Yamaha to take a look at manufacturing in this country.. United States is a big market and has room to improve manufacturing in all aspects of our lives.. Will tariffs raise prices, yes short term , most definitely. Then why have them? To bring back manufacturing in the United States.. Why do we need to bring back manufacturing in the United States? Because China has aligned with Russia and both China and Russia are now trading using forms of payment other than the world reserve currency which is the United States dollar. In short they don’t want the United States to have any control over them such as santions we imposed on them in the past… So if we rely on China to manufacture most everything for us and they were to stop shipping , who has the control then ? Its about control … United States has been for many years keeping the Global Economy operating along with help from other nations when it was in their best interest. Many battles and wars over these supply lines and routes over the years.. Many lives effected and many lives lost.. The amount of money spent is enormous as we furnish and pay for the largest military to accomplish this task.. Its the price of being the reserve currency and having financial control over the rest of the world.. It allowed us to be the judge of actions around the world and to impose sanctions when they stepped out of line..Now that China and Russia has in effect eliminated future sanctions it will be very important to bring back manufacturing as we will need to produce the very items we buy from others… And that includes recreational vehicles and parts used to make them.. The sooner the United States gets away from China manufacturing the better and their actions are not in the best interest of the United States…Tariffs are the start and overdue …Comments and thoughts on this sensitive subject without slinging mud please.. Just a good conversation and not meant to offend anyone is in order ….

It will be interesting.......
But if you think un-coupling from China will be easy - I would think twice.
They have set themselves up as the world's 'go to manufactures'. Even hard core Japanese companies have outsourced many parts making onto China. The world economy has spent the last 40 years evolving in this manner, it will take years to chart another course. Not saying it cant be done - but will take awhile. Where that leaves all of us in the meantime. At a minimum I can see costs going up across the board on everything from parts to whole units. And we may see scarcity kick in.
Again - will be interesting....
MS

 

[Motorhead]

Most of our parts and consumer goods come from China, so yes we need to bring back some of that, and also use other countries. But a tariff war will just add to our costs, so what's our alternative? Surely not having our neighbors Kiss his #*$&@, but instead working together with the intent of our betterment of the Tariffs! In other words smaller steps with continued yearly adjustments, instead of making most of the world hate us, as is NOW! Have had plans for a European Vacation with family, first Covid came which squashed that plan, now we are in the middle of planning again, and with the amount of Hate toward this country right now, it could be interesting to say the least!

 

[Richard Hodgins]

Regardless of what people think about China, bringing back manufacturing to USA makes absolutely no sense with the wage differences. Get ready for a $10,000 Iphone.
Almost everything we buy and consume is from China (or Asia). Imagine the price difference in Walmart where at least 80% of their inventory is from? Even think about something as simple as Xmas decorations, is any of it made here? Say goodbye to Dollartree or any stores like that.
And then of course the other 'parts' that go into vehicles and snowmobiles. There is a reason all this manufacturing was outsourced to Asia in the 1st place because it made economic sense.
All our riding gear is also made over there in Asia, all the brands (FXR, KLIM etc ) outsource there. All of our clothes in general are made over there too, check any label, I've never seen something that said MADE in the USA.
None of this will Make America great....

 

[74Nitro]

Regardless of what people think about China, bringing back manufacturing to USA makes absolutely no sense with the wage differences. Get ready for a $10,000 Iphone.
Almost everything we buy and consume is from China (or Asia). Imagine the price difference in Walmart where at least 80% of their inventory is from? Even think about something as simple as Xmas decorations, is any of it made here? Say goodbye to Dollartree or any stores like that.
And then of course the other 'parts' that go into vehicles and snowmobiles. There is a reason all this manufacturing was outsourced to Asia in the 1st place because it made economic sense.
All our riding gear is also made over there in Asia, all the brands (FXR, KLIM etc ) outsource there. All of our clothes in general are made over there too, check any label, I've never seen something that said MADE in the USA.
None of this will Make America great....

America is the economic envy of the world. They already are GREAT. All the big tech giants are US based. Low unemployment and the worlds reserve currency. No need to mess with things.
Rock on.

 

[earthling]

Regardless of what people think about China, bringing back manufacturing to USA makes absolutely no sense with the wage differences. Get ready for a $10,000 Iphone.
Almost everything we buy and consume is from China (or Asia). Imagine the price difference in Walmart where at least 80% of their inventory is from? Even think about something as simple as Xmas decorations, is any of it made here? Say goodbye to Dollartree or any stores like that.
And then of course the other 'parts' that go into vehicles and snowmobiles. There is a reason all this manufacturing was outsourced to Asia in the 1st place because it made economic sense.
All our riding gear is also made over there in Asia, all the brands (FXR, KLIM etc ) outsource there. All of our clothes in general are made over there too, check any label, I've never seen something that said MADE in the USA.
None of this will Make America great....

The average salary in manufacturing countries outside the US is $687.00 a month. To bring manufacturing back to the US would mean at minimum increasing the costs to $1255.00 a month (poverty level). I wonder how many people on this forum would be happy with that wage. To bring manufacturing back to the US and keep current US wage rates would mean an increase in core cost to $4019.00 a month (average factory salary in USA). That is an increase in core costs of almost 6x. That is without taking into consideration higher overheads and the cost of processes since the US has the third highest standards worldwide when it comes to manufacturing conditions (hours/safety/training/etc), which will all add to the overall labor cost.

I would recommend that anyone who thinks bringing manufacturing back to the US is a good idea, read this report. The company producing it is considered to be Centrist to Centrist-left in policy and of the highest possible ranking in credibility.

 

[Simplespeed]

One of the main reasons we need to eliminate China and produce here is by doing so we keep the money here and stop sending our hard earn money to China and other countries.. Another reason is based on China actions in the international waters that they continue to over step their boundaries provoking a future war… Another reason is they no longer support the American dollar to settle trade and are working hard around the world to become the reserve currency.. In less than ten years from now China can not continue to produce the goods and services at current scale due to aging population and no younger generation to replace the current workforce even with A I and more efficient technology… This was a result of one child only rule placed on the people for many years ..One of the most important pieces of information is that the China low wages we heard about for years are now higher, much higher and not the deal they once were…Couple that with kids that don’t want to work and are laying flat recently its now a problem. Are some things still cheap yes for sure but, many products are going up and will continue to cost more . These a only a few issues as there are many, many more ….

 

[Big Ugly]

Let's see, the country that's hell bent on overtaking us happens to be the number one producer of our products and has been stealing IP from our businesses and military for decades with no recourse. Well, I think we can find a better country to do business with or better yet get back to manufacturing it here, heard we have 7 million job openings that need to be filled. China continues to send fentanyl through cartels and other means and is also proven to be responsible for the covid outbreak, that same country produces 95 percent of our pharmaceuticals! The only good from this is, it keeps me exercising!

 

[Simplespeed]

I think that Chinese WEATHER BALLOON that the United States shot down was a turning point as it had equipment the size of a bus performing all sorts of surveillance and other tasks… I have no problem with the good people of China its their Leaders and Government that cause concern… China has a much larger massive National debt and has injected large amounts of Stimulus into their economy with less than stellar results which effects their credit rating. The problem is not the debt, its they are not transparent about anything and because they are not its hard to trust anything they say and or do… I think like it or not the United States will start to move away from Chinese manufacturing weather we bring back here or find it in other places. This will not happen all at once unless there is a war.. China and Canada has now taken a hard line on these latest tariffs. All others have a will to have balance trade. The two that effect the Snowmobile industry the most …. Hold on cause things are going to get interesting….